|
which there is a tax liability. If
there are credits from more |
than one tax year that are available to offset a
liability, the |
earlier credit shall be applied first. In no event shall a |
credit
under this Section reduce the taxpayer's
liability to |
less than
zero.
|
(Source: P.A. 93-543, eff. 1-1-04; revised 12-6-03.)
|
Section 10. The Film Production Services Tax Credit Act is |
amended by changing Sections 10, 15, 20, 30, 45, and 90 and by |
adding Section 43 as follows:
|
(35 ILCS 15/10)
|
(Section scheduled to be repealed on January 1, 2006)
|
Sec. 10. Definitions. As used in this Act:
|
"Accredited production" means a film, video, or television |
production that
has been certified by the Department in which |
the aggregate Illinois labor
expenditures
included in the cost |
of the production, in the period that ends 12 months after
the |
time principal filming or taping of the production began, |
exceed $100,000
for productions of 30 minutes or longer, or |
$50,000 for productions of less
than 30
minutes; but does not |
include a production that:
|
(1) is news, current events, or public programming, or |
a program that
includes weather or market reports;
|
(2) is a talk show;
|
(3) is a production in respect of a game, |
questionnaire, or contest;
|
(4) is a sports event or activity;
|
(5) is a gala presentation or awards show;
|
(6) is a finished production that solicits funds;
|
(7) is a production produced by a film production |
company if records, as
required
by 18
U.S.C. 2257, are to |
be maintained by that film production company with respect
|
to any
performer portrayed in that single media or |
multimedia program; or
|
(8) is a production produced primarily for industrial, |
|
corporate, or
institutional purposes.
|
"Accredited production certificate" means a certificate |
issued by the
Department certifying that the production is an |
accredited production that
meets the guidelines of this Act.
|
"Applicant" means a taxpayer that is a film production |
company that is
operating or has operated an accredited |
production located within the State of
Illinois and that
(i) |
owns the copyright in the accredited production throughout the
|
Illinois production period or (ii)
has contracted directly with |
the owner of the copyright in the
accredited production
or a |
person acting on behalf of the owner
to provide services for |
the production, where the owner
of the copyright is not an |
eligible production corporation.
|
"Credit" means the amount equal to 25% of the Illinois |
labor
expenditure approved by the Department.
The applicant is |
deemed to have paid, on its balance due day for the year, an
|
amount equal to 25% of its qualified Illinois labor expenditure |
for the tax
year. For Illinois labor expenditures generated by |
the employment of residents of geographic areas of high poverty |
or high unemployment, as determined by the Department, in an |
accredited production approved by the Department after January |
1, 2005, the applicant shall receive an enhanced credit of 10% |
in addition to the 25% credit.
|
"Department" means the Department of Commerce and Economic |
Opportunity
Community Affairs.
|
"Director" means the Director of Commerce and Economic |
Opportunity
Community Affairs.
|
"Illinois labor expenditure" means
salary or wages paid to |
employees of the
applicant for services on the accredited
|
production;
|
To qualify as an Illinois labor expenditure, the |
expenditure must be:
|
(1) Reasonable in the circumstances.
|
(2) Included in the federal income tax basis of the |
property.
|
(3) Incurred by the applicant for services on or after |
|
January 1, 2004.
|
(4) Incurred for the production stages of the |
accredited production, from
the final
script stage to the |
end of the post-production stage.
|
(5) Limited to the first $25,000 of wages paid or |
incurred to each
employee of
the production.
|
(6) Exclusive of the salary or wages paid to or |
incurred for the 2 highest
paid
employees of the |
production.
|
(7) Directly attributable to the accredited |
production.
|
(8) Paid in the tax year
for which the applicant is |
claiming the credit
or no later than 60 days after the end |
of the tax
year.
|
(9) Paid to persons resident in Illinois at the time |
the payments were
made.
|
(10) Paid for services rendered in Illinois.
|
(Source: P.A. 93-543, eff. 1-1-04; revised 11-3-04.)
|
(35 ILCS 15/15)
|
(Section scheduled to be repealed on January 1, 2006)
|
Sec. 15. Powers of the Department. The Department, in |
addition to those
powers granted under the Civil Administrative |
Code of Illinois, is granted and
has all the powers necessary |
or convenient to carry out and effectuate the
purposes and |
provisions of this Act, including, but not limited to, power |
and
authority to:
|
(a) Adopt rules deemed necessary and appropriate for the |
administration of
the tax credit program; establish forms for |
applications, notifications,
contracts, or any other |
agreements; and accept applications at any time during
the |
year.
|
(b) Assist applicants pursuant to the provisions of this |
Act
to promote, foster, and
support film production and its |
related job creation or retention within the
State.
|
(c) Gather information and conduct inquiries, in the manner |
|
and by the
methods as it deems desirable, including any |
information required for the Department to comply with Section |
45 and, without limitation, gathering
information with respect |
to applicants for the purpose of making any
designations or |
certifications necessary or desirable or to gather information
|
to assist the Department with any recommendation or guidance in |
the furtherance
of the purposes of this Act, including, but not |
limited to, information as to
whether the applicant |
participated in training, education, and recruitment
programs |
that are organized in cooperation with Illinois colleges and
|
universities, labor organizations, and the motion picture |
industry, and are
designed to promote and encourage the |
training and hiring of Illinois residents
who represent the |
diversity of the Illinois population.
|
(d) Provide for sufficient personnel to permit |
administration, staffing,
operation, and related support |
required to adequately discharge its duties and
|
responsibilities described in this Act from funds as may be |
appropriated by the
General Assembly for the administration of |
this Act.
|
(e) Require applicants, upon written request, to issue any |
necessary
authorization to the appropriate federal, state, or |
local authority for the
release of information concerning a |
project being considered under the
provisions of this Act, with |
the information requested to include, but not be
limited to, |
financial reports, returns, or records relating to the
|
applicant or the accredited production.
|
(f) Require that an applicant must at all times keep proper |
books of record
and account in accordance with generally |
accepted accounting principles
consistently applied, with the |
books, records, or papers related to the
accredited production |
in the custody or control of the taxpayer open for
reasonable
|
Department inspection and audits, and including, without |
limitation, the making
of copies of the books, records, or |
papers, and the inspection or appraisal of
any of the
assets of |
the applicant or the accredited production.
|
|
(g) Take whatever actions are necessary or appropriate to |
protect the
State's interest in the event of bankruptcy, |
default, foreclosure, or
noncompliance with the terms and |
conditions of financial assistance or
participation required |
under this Act, including the power to sell, dispose,
lease, or |
rent, upon terms and conditions determined by the Director to |
be
appropriate, real or personal property that the Department |
may receive as a
result of these actions.
|
(Source: P.A. 93-543, eff. 1-1-04.)
|
(35 ILCS 15/20)
|
(Section scheduled to be repealed on January 1, 2006)
|
Sec. 20. Tax credit awards. Subject to the conditions set |
forth in this
Act, an applicant is entitled to a credit as
of |
25% of the Illinois labor
expenditure approved by the |
Department under Section 40 of this Act.
|
(Source: P.A. 93-543, eff. 1-1-04.)
|
(35 ILCS 15/30)
|
(Section scheduled to be repealed on January 1, 2006)
|
Sec. 30. Review of application for accredited production |
certificate.
|
(a) In
determining whether to issue an accredited |
production certificate,
the Department must determine that a |
preponderance of the following conditions
exist:
|
(1) The applicant's production intends to make the |
expenditure in the
State required for certification.
|
(2) The applicant's production is economically sound |
and will benefit the
people of the State of Illinois by |
increasing opportunities for employment and
strengthen the |
economy of Illinois.
|
(3) The applicant has filed a diversity plan with the |
Department outlining specific goals (i) for hiring |
minority persons and females, as defined in the Business |
Enterprise for Minorities, Females, and Persons with |
Disabilities Act, and (ii) for using vendors receiving |
|
certification under the Business Enterprise for |
Minorities, Females, and Persons with Disabilities Act; |
the Department has approved the plan as meeting the |
requirements established by the Department; and the |
Department has verified that the applicant has met or made |
good-faith efforts in achieving those goals. The |
Department must adopt any rules that are necessary to |
ensure compliance with the provisions of this item (3) and |
that are necessary to require that the applicant's plan |
reflects the diversity of this State.
The applicant's |
production application includes a provision setting
forth |
the percentage of minority workers that the production |
company plans to
employ, subject to any applicable |
collective bargaining agreements with a labor
organization |
to
which the applicant is a signatory,
to perform work on |
the production. This provision should stress the
|
importance of hiring the percentage of minorities that is |
set out in the
application.
|
(4) The applicant's production application
indicates |
whether the applicant intends to participate in training, |
education,
and
recruitment programs that are organized in |
cooperation with Illinois colleges
and
universities,
labor |
organizations, and the motion picture industry and are |
designed to
promote
and
encourage the training and hiring |
of Illinois residents who represent the
diversity of the
|
Illinois population.
|
(5) That, if not for the credit, the applicant's |
production would not
occur in
Illinois, which may be |
demonstrated by any means including, but not limited to,
|
evidence that the applicant has multi-state or |
international location options
and could reasonably and |
efficiently locate outside of the State, or
demonstration |
that at least one other state or nation is being considered |
for
the production, or evidence that the receipt of the |
credit is a major factor in
the
applicant's decision and |
that without the credit the applicant likely would
not |
|
create or retain jobs in Illinois, or demonstration that |
receiving the
credit is essential to the applicant's |
decision to create or retain new jobs in
the State.
|
(6) Awarding the credit will result in an overall |
positive impact
to the State, as determined by the |
Department using the best available
data.
|
(b) If any of the provisions in this Section conflict with |
any existing
collective
bargaining agreements, the terms and |
conditions of those collective bargaining
agreements shall |
control.
|
(Source: P.A. 93-543, eff. 1-1-04.)
|
(35 ILCS 15/43 new) |
Sec. 43. Training programs for skills in critical demand. |
To accomplish the purposes of this Act, the Department may use |
the training programs provided for Illinois under Section |
605-800 of the Department of Commerce and Economic Opportunity |
Law of the Civil Administrative Code of Illinois.
|
(35 ILCS 15/45)
|
(Section scheduled to be repealed on January 1, 2006)
|
Sec. 45. Evaluation of tax credit program; reports to the |
General Assembly. |
(a) The
Department shall evaluate the tax credit program. |
The evaluation must include
an assessment of the effectiveness |
of the program in creating and retaining new
jobs in Illinois |
and of the revenue impact of the program, and may include a
|
review of the practices and experiences of other states or |
nations with similar
programs. Upon completion of this |
evaluation, the Department shall determine
the overall success |
of the program, and may make a recommendation to extend,
|
modify, or not extend the program based on this evaluation. |
(b) At the end of each fiscal quarter, the Department must |
submit to the General Assembly a report that includes, without |
limitation, the following information: |
(1) the economic impact of the tax credit program, |
|
including the number of jobs created and retained, |
including whether the job positions are entry level, |
management, talent-related, vendor-related, or |
production-related; |
(2) the amount of film production spending brought to |
Illinois, including the amount of spending and type of |
Illinois vendors hired in connection with an accredited |
production; and |
(3) an overall picture of whether the human |
infrastructure of the motion picture industry in Illinois |
reflects the geographical, racial and ethnic, gender, and |
income-level diversity of the State of Illinois.
|
(Source: P.A. 93-543, eff. 1-1-04.)
|
(35 ILCS 15/90)
|
(Section scheduled to be repealed on January 1, 2006)
|
Sec. 90. Repeal. This Act is repealed on January 1, 2007
2 |
years after its effective date.
|
(Source: P.A. 93-543, eff. 1-1-04; 93-840, eff. 7-30-04.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|